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ACCOUNTANCY
Time allowed : 3 hours Maximum Marks : 80
General Instructions:
(i) This question paper contains three parts A, B and C.
(ii) Part A is Compulsory for all candidates.
(iii) Condidates can attempt only one part of the remaining parts B and C.
(iv) All parts of the questions should be attempted at one place.
QUESTION PAPER CODE 67/1/1
Part A
(Accounting for not for Profit Organisations, Partnership Firms & Companies)
1. What is the basis for preparing an Income and Expenditure Account in the case of
Not-for-Profit Organizations. 1
2. Distinguish between Fixed and Fluctuating Capital Accounts. 1
3. State the two main rights that a newly admitted partner acquires in the firm. 1
4. How does the market situation affect the value of goodwill of a firm ? 1
5. Pass the necessary Journal entry when 10,000 debentures of Rs. 100 each are issued
as collateral security against a Bank loan of Rs. 8,00,000. 1
6. From the following information of a club show the amounts of match expenses and
match fund in the Financial Statements of the Club for the years ended on 31st
March, 2009 and 31st March, 2010.
Details Amount Rs.
Match expenses (paid during the year 2009 - 2010) 30,000
Match Fund (as on 31-3-2009) 17,000
Donation for Match Fund (Received during the year 2009-2010) 9,000
Proceeds from the sale of match tickets (Received during the year 2009-2010) 3,000
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7. Y Ltd. purchased furniture costing Rs. 1,35,000 from A. B. Ltd. The payment was
made by issue of Equity Shares of Rs. 10 each at a discount of Rs. 1 per share. Pass
necessary Journal entries in the books of Y Ltd. 3
8. X Ltd. redeemed 100, 6% Debentures of Rs. 100 each by converting them into
Equity Shares of Rs. 100 each. The 6% Debentures were redeemable at 10%
premium for which the Equity Shares were issued at 25% premium. Pass the
necessary Journal entries for the redemption of above mentioned debentures in the
books of X Ltd. 3
9. A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. The
following was the Balance Sheet of the firm as on 31-3-2010.
Liabilities Amount Rs. Assets Amount Rs.
Capitals : A 60,000 Sundry Assets 80,000
B 20,000
80,000 80,000
The profits Rs. 30,000 for the year ended 31-3-2010 were divided between the
partners without allowing interest on capital @ 12% p.a. and salary to A @ Rs.
1,000 per month. During the year A withdrew Rs. 10,000 and B Rs. 20,000.
Pass the necessary adjustment journal entry and show your working clearly. 4
10. A business has earned average profits of Rs. 1,00,000 during the last few years and
the normal rate of return in similar business is 10%. Find out the value of Goodwill
by
(i) Capitalisation of super profit method and
(ii) Super profit method if the goodwill is valued at 3 years purchase of super profit.
The assets of the business were Rs. 10,00,000 and its external liabilities Rs. 1,80,000. 4
11. Pass the necessary Journal entries for the issue and redemption of Debentures in thefollowing cases:
(i) 10,000,10% Debentures of Rs. 120 each issued at 5% premium, repayable
at par.
(ii) 20,000, 9% Debentures of Rs. 200 each issued at 20% premium, repayable at
30% premium. 4
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12. From the following item of Receipts & Payments A/c. of Young Ladies Club, prepare
an Income and Expenditure Account for the year ended 31-3-2010.
Rs.
Salaries paid 50,000
Lighting and Heating 5,000
Printing and Stationery (including Rs. 500 for the previous year) 3,500
Subscriptions received (including Rs. 2,000 received in advance 40,000
and Rs. 5,000 for the previous year)
Net proceeds of Refreshment Room 45,000
Miscellaneous expenses. 16,000
Interest paid on Loan for half year 1,200
Rent and Rates (including Rs. 1,000 prepaid) 7,500
Locker rent received 4,500
Additional Information:
Subscriptions in arrears on 31-3-2010 were Rs. 8,000 and Half year's interest on
loan was also outstanding. 6
13. Pass the necessary Journal entries for the following transactions on the dissolution of
the firm of P and Q after the various assets (other than cash) and outside liabilities
have been transferred to Realisation Account.
(i) Bank Loan Rs. 12,000 was paid.
(ii) Stock worth Rs. 16,000 was taken over by partner Q.
(iii) Partner P paid a creditor Rs. 4,000.
(iv) An asset not appearing in the books of accounts realised Rs. 1,200.
(v) Expenses of realisation Rs. 2,000 were paid by partner Q.
(vi) Profit on realisation Rs. 36,000 was distributed between P and Q in 5 : 4 ratio. 6
14. On 1st April, 2008'a company made an issue of Rs. 2,00,000, 6% Debentures of
Rs. 100 each, repayable at a premium of 10%. The terms of issue provided for the
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redemption of 400 debentures every year starting from the end of 31-3-2010 either
by purchase from the open market or by draw of lots at the company's option.
On 31-3-2010, the company purchased for cancellation 300 Debentures at 95%
and 100 Debentures at 90%.
Pass the necessary Journal entries for the issue and redemption of debentures assuming
that the company had already created the Debenture Redemption Reserve A/c by the
required amount. 6
15. X Ltd. issued 40,000 Equity Shares of Rs. 10 each at a premium of Rs. 2.50 per
share. The amount was payable as follows:
On application Rs. 2 per share
On allotment Rs. 4.50 per share (including premium)
and on call Rs. 6 per share
Owing to heavy subscription the allotment was made on pro-rata basis as follows:
(a) Applicants for 20,000 shares were allotted 10,000 shares.
(b) Applicants for 56,000 shares were allotted 14,000 shares.
(c) Applicants for 48,000 shares were allotted 16,000 shares.
It was decided that excess amount received on applications would be utilized onallotment and the surplus would be refunded.
Ram, to whom 1,000 shares were allotted, who belong to category (a), failed to
pay allotment money. His shares were forfeited after the call.
Pass the necessary Journal entries in the books of X Ltd. for the above transactions. 8
OR
Give Journal entries to record the following transactions of forfeiture and re-issue ofshares and open share forfeited account in the books of the respective companies.
(i) C Ltd. forfeited 1000 shares of Rs. 100 each issued at a discount of 8% on
these shares the first call of Rs. 30 per share was not received and the final
call of Rs. 20 per share was yet to be called. These shares were subsequently
re-issued at Rs. 70 per share Rs. 80 paid up.
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(ii) L Ltd. forfeited 470 Equity Shares of Rs. 10 each issued at a premium of Rs.
5 per share for non-payment of allotment money of Rs. 8 per share (including
share premium Rs. 5 per share) and the first and final call of Rs. 5 per share.
Out of these 60 Equity Shares were subsequently re-issued at Rs. 14 per
share.
16. M, N and a were partners in a firm sharing profits and losses equally. Their Balance
Sheet on 31-12-2009 was as follows:
Liabilities Amt. Rs. Assets Amt. Rs.
Capitals: M 70,000 Plant and Machinery 60,000
N 70,000 Stock 30,000
O 70,000 2,10,000 Sundry Debtors 95,000
General Reserve 30,000 Cash at Bank 40,000
Creditors 20,000 Cash in Hand 35,000
2,60,000 2,60,000
N died on 14th March, 2010. According to the Partnership Deed, executors of the
deceased partner are entitled to :
(i) Balance of partner's capital account.
(ii) Interest on Capital @ 5% p.a.
(iii) Share of goodwill calculated on the basis of twice the average of past three
year's profits and
(iv) Share of profits from the closure of the last accounting year till the date of
death on the basis of twice the average of three completed year's profits
before death.
Profits for 2007, 2008 and 2009 were Rs. 80,000, Rs. 90,000, Rs. 1,00,000
respectively. Show the working for deceased partner's share of goodwill and profits
till the date of his death. Pass the necessary journal entries and prepare N's Capital
Account to be rendered to his executors. 8
OR
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On 31-3-2010 the Balance Sheet of W and R who shared profits in 3 : 2 ratio was
as follows:
Liabilities Amt. Rs. Assets Amt. Rs.
Creditors 20,000 Cash 5,000
Profit and Loss Account 15,000 Sundry Debtors 20,000
Capital Accounts: Less: Provision 700 19,300
W 40,000 Stock 25,000
R 30,000 70,000 Plant and Machinery 35,000
Patents 20,700
1,05,000 1,05,000
On this date B was admitted as a partner on the following conditions:
(a) 'B' will get 4/15th share of profits.
(b) 'B' had to bring Rs. 30,000 as his capital to which amount other Partners
capitals shall have to be adjusted.
(c) He would pay cash for his share of goodwill which would be based on 2
years purchase of average profits of past 4 years.
(d) The assets would be revalued as under:
Sundry debtors at book value less 5% provision for bad debts. Stock at Rs.
20,000, Plant and Machinery at Rs. 40,000.
(e) The profits of the firm for the years 2007, 2008 and 2009 were Rs. 20,000;
Rs. 14,000 and Rs. 17,000 respectively.
Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of
the new firm.
PART - B
(Financial Statements Analysis)
17. What is meant by a 'Common Size Statement' ? . 1
18. Give the meaning of 'Cash Flow'. 1
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19. State with reason whether deposit of cash into Bank will result into inflow, outflow
or noflow of cash. 1
20. List the items which are shown under the heading current liabilities and provisions
as per Schedule VI Part-I of the Companies' Act, 1956. 3
21. Prepare a Comparative Income Statement from the following information. 4
2009 2010
Rs. Rs.
Sales 10,00,000 12,50,000
Cost of goods sold 5,00,000 6,50,000
Carriage inwards 30,000 50,000
Operating expenses 50,000 60,000
Income tax 50% 50%
22. On the basis of the following information, calculate:
(i) Debt-Equity Ratio and
(ii) Working Capital Turnover Ratio
Information: Rs.
Net Sales 60,00,000
Cost of goods sold 45,00,000
Other current assets 11,00,000
Current liabilities 4,00,000
Paid up share capital 6,00,000
6% Debentures 3,00,000
9% Loan 1,00,000
Debenture Redemption Reserve 2,00,000
Closing Stock 1,00,000 4
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23. From the following Balance Sheets of Vijaya Ltd. as on 31-3-2009 and 31-3-2010
prepare a Cash Flow Statement.
Liabilities 31-3-2009 31-3-2010 Assets 31-3-2009 31-3-2010
Rs. Rs. Rs. Rs.
Share Capital 45,000 65,000 Fixed Assets 46,700 83,000
General Reserve 15,000 27,500 Stock 11,000 13,000
Profit & Loss Account 10,000 15,000 Debtors 18,000 19,500
Trade Creditors 8,700 11,000 Cash 2,000 2,500
Preliminary
Expenses 1,000 500
78,700 1,18,500 78,700 1,18,500
Additional Information:
(i) Depreciation on Fixed Assets for the year 2009-2010 was Rs. 14,700.
(ii) An interim dividend Rs. 7,000 has been paid to the shareholders during the
year. 6
PART - C(Computerised Accounting)
17. What is codification of accounts? 1
18. What are logical values? 1
19. What is a query ? 2
20. What is a record in DBMS?
21. Why in DBMS do we seek to split formation into different tables rather than a single
table? 3
22. Briefly explain the Accounting Information System. 4
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23. Calculate the formula on excel for the following:
Dearness allowance
35% of basic pay upto Rs. 15,000, Minimum Rs. 4,000
30% on above basic pay Rs. 15,000, Minimum Rs. 6,600House Rent Allowance
Up to basic pay of Rs. 8,000 Rs. 3,000
Rs. 8,001-15,000 basic pay Rs. 6,000
Above Rs. 15,000 basic pay Rs. 9,000
City Compensatory Allowance:
10% of basic pay subject to a minimum of Rs. 1,500 3 x 2=6
QUESTION PAPER CODE 67/1
Part A
(Accounting for not for Profit Organisations, Partnership Firms & Companies)
1. What is the basis for preparing Receipt and Payment Account? 1
2. Give the average period in months for charging interest on drawings for the same
amount withdrawn at the beginning of each quarter. 1
3. State the meaning of sacrificing ratio. 1
4. How does the nature of business affect the value of goodwill of a firm? 1
5. Give the meaning of 'Issue of Debentures as a collateral security'. 1
6. From the following information of a club, show the amounts of Prize awarded &
Prize Fund in the Financial Statements of the club for the year ended on 31st March
2009 and 31st March 2010 : 3
Details Rs.
Prize Fund as on 1.4.2009 20,000
Prize Fund donations received during the year 2009 - 2010 40,000
Prizes awarded during the year 2009 - 2010 69,000
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7. Goodluck Ltd. purchased machinery costing Rs. 10,00,000 from Fair Deals Ltd.
The company paid the price by issue of Equity shares of Rs. 10 each at a premium
of 25%.
Pass necessary journal entries for the above transactions in the books of Goodluck
Ltd. 3
8. X Ltd. redeemed 1000, 6% Debentures of Rs. 100 each by converting them into
Equity shares of Rs. 100 each. The 6% Debentures were redeemable at a premium
of 5% for which the Equity shares were issued at a premium of 25%. Pass the
necessary journal entries for the redemption of the above mentioned Debentures in
the books of X Ltd. 3
9. A and B entered into partnership on 1st April 2009 without any partnership deed.
They introduced capitals of Rs. 5,00,000 and Rs. 3,00,000 respectively. On 31st
October 2009, A advanced Rs. 2,00,000 by way of loan to the firm without any
agreement as to interest.
The Profit and Loss Account for the year ended 31.3.2010 showed a profit of Rs.
4,30,000, but the partners could' not agree upon the amount of interest on loan to
be charged and the basis of division of profits. Pass a journal entry for the distribution
of the profit between the partners and prepare the Capital A/c of both the partners
and Loan A/c of 'A'. 4
10. A partnership firm earned net profits during the last three years as follows:
Years Net profit
Rs.
2007 - 2008 1,90,000
2008 - 2009 2,20,000
2009 - 2010 2,50,000
The capital employed in the firm throughout the above mentioned period has been
Rs. 4,00,000. Having regard to the risk involved, 15% is considered to be a fairreturn on the capital. The remuneration of all the partners during this period is estimated
to be Rs. 1,00,000 per annum.
Calculate the value of goodwill on the basis of (i) two year's purchase of super
profits earned on average basis during the above mentioned three years and (ii) by
capitalisation method. 4
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11. Pass the necessary journal entries for the issue and redemption of Debentures in the
following cases; 4
(i) 15,000, 9% Debentures of Rs. 250 each issued at 5% premium, repayable at
15% premium.
(ii) 2,00,000, 12% Debentures of Rs. 10 each issued at 8% premium, repayable
at par.
12. From the following items of Receipt & Payment A/c of South India Club, prepare an
Income and Expenditure Account for the year ended 31.3.2010 : 6
Rs.
Salaries paid 55,000
Lighting expenses 5,500
Stationery (including Rs. 400 for the previous year) 4,000
Subscriptions received (including Rs. 1,000 received
in advance and Rs. 750 for the previous year) 44,000
Net proceeds of Refreshment Room 30,000
Miscellaneous Expenses 3,000
Interest paid on loan for three months 1,200
Rent and Rates (including Rs. 500 pre-paid) 4,500
Lockers Rent received 4,900
Additional Information:
Subscriptions in arrears on 31.3.2010 were Rs. 4,700 and nine months interest on
loan was also outstanding.
13. Pass the necessary journal entries for the following transactions on the dissolution of
the firm of James and Haider who were sharing profits and losses in the ratio of
2 : 1. The various assets (other than cash) and outside liabilities have been transferredto Realisation Account: 6
(i) James agreed to payoff his brother's loan Rs. 10,000.
(ii) Debtors realised Rs. 12,000.
(iii) Haider took over all investments at Rs. 12,000.
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(iv) Sundry creditors Rs. 20,000 were paid at 5% discount.
(v) Realisation expenses amounted to Rs. 2,000.
(vi) Loss on realisation was Rs. 10,200.
14. On 1.1.2007 a Public Limited Company issued 15,000, 10% Debentures of Rs.
100 each at par which were repayable at a Premium of 15% on 31.12.2011. On the
date of maturity, the company decided to redeem the above mentioned 10%
Debentures as per the terms of issue, out of profits; The Profit & Loss A/c shows a
credit balance of Rs. 20,00,000 on this date. The offer was accepted by all the
Debenture-holders and all the Debentures were redeemed.
Pass the necessary journal entries in the books of the Company only for the redemp-
tion of Debentures, if the Company follows Sec. 117 C of the Companies Act. 6
15. Dinesh Ltd. invited applications for issuing 10,000 Equity shares of Rs. 10 each.
The amount was payable as follows:
On Application Rs. 1
On Allotment Rs. 2
On First Call Rs. 3
On Second and Final Call - Balance
The issue was fully subscribed. Ram to whom 100 shares were allotted, failed to
pay the allotment money and his shares were forfeited immediately after allotment.
Shyam to whom 150 shares were allotted, failed to pay the first call. His shares
were also forfeited after the first call. Afterwards the second and final call was made.
Mohan to whom 50 shares were allotted failed to pay the second and final call. His
shares' were also forfeited. All the forfeited shares were- re-issued at f 9 per share
fully paid up. Pass necessary journal entries in the books of Dinesh Ltd. 8
OR
Moti Ltd. invited applications for issuing 10,00,000 Equity shares of Rs. 10 each at
a premium of Rs. 2 per share. The amount was payable as follows:
On Application Rs. 5 (including premium)
On Allotment Rs. 4
On First and Final Call Rs. 3
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Applications for 15,00,000 shares were received. Applications for 3,00,000 shares
were rejected and pro-rata allotment was made to the remaining applicants. Excess
application money was utilized towards sums due on allotment. Giri who had applied
for 24,000 shares failed to pay the allotment and call money. His shares were forfeited.
Out. of the forfeited shares 10,000 shares were reissued for f 8 per share fully paidup. Pass necessary journal entries in the books of Moti Ltd.
16. X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2.
On 31.3.2010 their Balance Sheet was as follows:
Liabilities Amount Rs. Assets Amount Rs.
Capital Accounts: Building 50,000
X : 75,000 Patents 15,000
Y : 62,500 Machinery 75,000
Z : 37,500. 1,75,000 Stock 37,500
Sundry Creditors 42,500 Debtors 20,000
Cash at Bank 20,000
2,17,500 2,17,500
Z died on 31.7.2010. It was agreed that :
(a) Goodwill be valued at 2 year's purchase of the average profits of the last
four years, which were as follows:
Years Profits Rs.
2006 - 2007 32,500
2007 - 2008 30,000
2008 - 2009 40,000
2009 - 2010 37,500
(b) Machinery be valued at Rs. 70,000; Patents at Rs. 20,000 and Building at
Rs. 62,500.
(c) For the purpose of calculating Z's share of profits in the year of his death the
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21. Calculate Current Ratio of a company from the following information: 4
Stock Turnover Ratio: 4 times
Stock in the end was Rs. 20,000 more than stock in the beginning.
Sales Rs. 3,00,000 Gross Profit Ratio 25%
Current Liabilities Rs. 40,000
Quick Ratio 0.75 : 1
22. Prepare a Comparative Income Statement from the following information: 4
Particulars 31.3.2009 31.3.2010
Rs. Rs.
Sales 40,000 50,000
Cost of goods sold 30,000 35,000
Wages paid 16,000 14,000
Operating Expenses 2,500 3,000
Other Incomes 2,000 3,000
Income Tax 4,750 7,500
23. From the following Balance Sheets of Vikas Ltd. as on 31.3.2009 and 31.3.2010,
prepare a Cash Flow Statement:
Liabilities 31.3.2009 31.3.2010 Assets 31.3.2009 31.3.2010
Rs. Rs. Rs. Rs.
Share Capital 90,000 1,30,000 Fixed Assets 93,400 1,66,000
General Reserve 30,000 55,000 Stock 22,000 26,000
Profit and Loss Account 20,000 30,000 Debtors 36,000 39,000
Trade Creditors 17,400 22,000 Cash 4,000 5,000
Preliminary
Expenses 2,000 1,000
1,57,400 2,37,000 1,57,400 2,37,000
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Additional Information:
(i) Depreciation charged on fixed assets for the year 2009 - 2010 was Rs. 20,000.
(ii) Income Tax Rs. 5,000 has been paid in advance during the year.
PART C
(Computerised Accounting)
17. What are Sequential codes? 1
18. What is Normalisation ? 1
19. What is the function of 'Table' in DBMS? 2
20. What is' a join line in DBMS? 3
21. Why in DBMS do we seek to split formation into different tables rather than a
single table? 3
22. What are the advantages of Computerised Accounting System? 4
23. Calculate the formula on Excel for the following:
Dearness Allowance 3x2 = 6
45% on basic pay upto Rs. 15,000, minimum Rs. 6,000
35% on basic pay above Rs. 15,000, minimum Rs. 7,500
House Rent Allowance
Upto basic pay of Rs. 10,000 : Rs. 4,000
Rs. 10,001 Rs. 15,000 basic pay : Rs. 8,000
Above Rs. 15,000 basic pay : Rs. 10,000
City Compensatory Allowance:
10% of basic pay subject to a minimum of Rs. 1,500
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Marking Scheme Accountancy
General Instructions
1. The Marking scheme provides general guidelines to reduce subjectivity in the marking.
The answers given in the marking scheme are suggested answers. The content is thus
indicative. If a student has given any other answer which is different from the one given in
the marking scheme but conveys the same meaning, such answers should be given full
weight age.
2. Some of the questions may relate to higher order thinking ability. These questions have
been indicated to you separately by a star mark and are to be evaluated carefully to
judge the students understanding/analytical ability.
3. Evaluation is to be done as per instructions provided in the Marking Scheme. It shouldnot be done according to one's own interpretation or any other consideration-Marking
Scheme should be strictly adhered to and religiously followed.
4. The Head-Examiner has to go through the first five answer scripts evaluated by each
evaluator to ensure that evaluation has been carried out as per the instructions given in
the marking scheme. The remaining answer scripts meant for evaluation shall be given
only after ensuring that there is no significant variation in the marking of individual
evaluators.
5. If a question has parts, please award marks on the right hand side for each part. Marks
awarded for different parts of the question should then be totalled up and written in the
left hand margin and circled.
6. If a question does not have any parts, marks must be awarded in the left hand margin.
7. If a student has attempted an extra question, answer of the question deserving more
mark should be retained and other answer scored out.
8. No marks to be deducted for the cumulative effect of an error. It should be penalized
only once.
9. Deductions up to 25% of the marks must be made if the student has not drawn formats
of the journal and ledger and has not given the narrations.
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QUESTION PAPER CODE 67/1/1
EXPECTED ANSWERS/VALUE POINTS
PART A
(Not for Profit organisations, Partnership firms and company Accounts) Marks Dist.
1. What is the basis .
Not- for -Profit Organisation?
Ans. The basis for preparing an Income & Expenditure Account in the case of Not for
profit Organisation is accrual basis of accounting. 1 Mark
2. Distinguish b/w Accounts. (Any One) 1 Mark
Ans.
10. A full scale of marks 1-80 has to be used. Please do not hesitate to award full marks if
the answer deserves it.
11. No marks are to be deducted or awarded for writing / not writing TO and BY while
preparing journal and ledger accounts.
12. In theory questions, credit is to be given for the content and not for the format.
Basis Fixed Capital Fluctuating Capital
Balance of
Accounts
In case of fixed capital the
balance of capital accounts
normally remain unchanged
except capital is introduced or
where capital is withdrawn
permanently.
In case of fluctuating capital
accounts, the balance in capital
accounts change from year to year.
No. of
Accounts
In case of fixed capital
accounts, each partner has 2accounts(1) Capital account (2)
Current Account
In case of Fluctuating capital
accounts, each partner has onlyone account, i.e. Capital Account.
Recording of
Adjustment
All adjustments for drawings,
interest, profit etc. are recorded
in current accounts.
All Adjustments are made in
Capital accounts itself.
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3. State two....
in the firm.
Ans. The new partner along with other partners gets the following two rights.
a) Right to share the profits of the firm. Mark for b) Right to share in the assets of the firm.
each right
+ = 1
4. How does....... of a firm.
Ans. Market situation: - The monopoly condition or limited competition enables the con-
cern to earn high profits which leads to higher value of goodwill. 1 Mark
5. Pass the necessary ......
of Rs. 8,00,000.
Ans. Journal 1 Mark
6. From the... 3,000.
Ans. Balance Sheet
as on 31st March 2009
Liabilities Rs. Assets Rs.
Match Fund 17,000
Date Particulars LF Dr ( Rs.) Cr(Rs.)
Debenture Suspense A/c Dr 10,00,000
To Debenture A/c 10,00,000
(Being the issue of 10,000 Debentures
of Rs. 100/- each as collateral security
against the bank loan of Rs 8,00,000.
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Balance Sheet
as on 31st March 2010
Liabilities Rs. Assets Rs. 2
Match Fund 17,000
Add: Donation for
Match Fund 9,000
26,000
Add: Proceeds from
Sale of match tickets 3,000
29,000
Less: Match Expenses 30,000
Transfer to income &
expenditure A/c (1,000) Nil
Income And Expenditure Account
Dr. for the year ended 31st march,2010 Cr.
Expenditure Rs. Income Rs.
To Match Expenses 1,000
Note :- If the examinee has shown a working note for calculating the excess amount
of match expenses instead of balance sheet as on 31st Dec 2010 full credit should
be given.
7. Y Ltd. Purchased furniture ....
books of Y Ltd.
Ans. Journal of Y Ltd.
1 mark
+
+2+= 3 marks
Date Particulars LF
Dr( Rs.) Cr(Rs.)
Furniture A/c Dr 1,35,0000To AB Ltd.
(Being furniture purchased)
1,35,000
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2. Calculation of Calls in arrears on allotment:-
Category (a) Applicants 20,000 shares were allotted 10,000 shares
Ram was allotted 1000 shares, He applied for : (1000 x 20000) /
10000 = 2000 sharesCalls in arrear (1000 x 4.5 ) = 4,500
Less: Already received (1000 x 2) = 2,000
Rs. 2,500
Journal
Date Particulars LF Dr (Rs.) Cr (Rs.)
Bank A/c Dr 2,48,000
To Equity Share Application A/c
(Being application money received) 2,48,000 1
Equity share application A/c Dr 2,48,000
To Equity share capital A/c 80,000 1
To Equity share Allotment A/c 1,47,000
To Bank A/c 21,000
(Being application money transferred)
Equity Share Allotment A/c Dr 1,80,000 1
To Equity Share Capital A/c 80,000
To Securities Premium A/c 1,00,000
(Being Allotment money due)
Bank A/c Dr 30,500
To Equity Share Allotment A/c 30,500 1
OR
Bank A/c Dr 30500
Calls in Arrear A/c Dr 2500
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To Equity Share Allotment A/c 33000
(Being allotment money received)
Equity Share First & Final Call A/c Dr 2,40,000
To Equity Share Capital A/c 2,40,000 1
(Being First & Final Call money due)
Bank A/c Dr 2,34,000
To Equity Share First & Final Call A/c 2,34,000 1
OR
Bank A/c Dr 234000
Calls in Arrears A/c Dr 6000
To Equity Share First & Final Call A/c 240000
(Being First & Final Call money received)
Equity Share Capital A/c Dr. 10000
Securities Premium A/c Dr. 2500
To Forfeited Share A/c 4000 1
To Equity Share Allotment A/c 2,500 = 8
To Equity Share First & Final Call A/c 6,000 marks
OR
Equity Share Capital A/c Dr. 10000
Securities Premium A/c Dr. 2500
To Forfeited Share A/c 4000
To Calls in Arrears A/c 8500
(Being 1000 shares forfeited)
OR
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15. Give Journal entries .... Rs. 14 per share.
Ans. Journal
Date Particulars LF Dr (Rs.) Cr (Rs.)
Share Capital A/c (1000 x 80) Dr 80,000
To Forfeited Share A/c (1000 x 42) 42,000 1
To Discount on Issue of Share A/c
(1000 x 8) 8,000
To Share First Call A/c (1000 x 30 ) /
Calls in Arrears A/c 30,000
(Being 1000 Shares Forfeited due to non
payment of first call)
Bank A/c (1000 x 70) Dr 70,000
Discount on Issue of Share A/c (1000 x 8 ) Dr 8,000
Forfeited Share A/c Dr 2,000 1
To Share Capital A/c (1000 x 80) 80,000
(Being 1000 shares re issued as Rs. 80 called
up at Rs. 70 per share)
Forfeited Share A/c Dr 40,000
To Capital Reserve A/c 40,000
(Being the profit on re- issued shares transferred
to Capital Reserve A/c)
Forfeited share Account
Particulars Rs. Particulars Rs.
To Share Capital A/c 2000 By share capital A/c 42000 1
To Capital Reserve 40000
42000 42000
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ii. Journal
Date Particulars LF Dr (Rs.) Cr (Rs.)
Equity Share Capital A/c (470 x 10) Dr 4,700
Securities Premium A/c (470 x 5) Dr 2,350
To Forfeited Share A/c (470 x 2) 940 1
To Equity Share Allotment A/c (470 x 8) 3,760
To Equity Share First & Final Call A/c
(470 x 5) 2,350
OR
Equity Share Capital A/c (470 x 10) Dr 4700
Securities Premium A/c (470 x 5) Dr 2350
To Forfeited Share A/c (470 x 2) 940
To Calls in Arrears A/c 6110
(Being 470 shares forfeited)
Bank A/c (60 x 14 ) Dr. 840
To Equity Share Capital A/c (60 x 10) 600 1
To Security Premium A/c (60 x 4) 240
(Being 60 shares re issued @ of Rs. 14 per share)
Forfeited Shares A/c Dr 120
To Capital Reserve A/c 120
(Being the profit on re-issued shares transferred
to capital reserve A/c)
Forfeited share Account
Particulars Rs. Particulars Rs. 1
To Capital Reserve A/c 120 By share capital A/c 940
To Balance c/d 820
940 940
Working Note:
Amount of Forfeited shares transferred to capital reserve A/c = 940 x 60 / 470 = Rs. 120
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16. M, N & O were partners............. his executors
Ans. Journal
Date Particulars LF Dr (Rs.) Cr (Rs.)
2010 General Reserve A/c Dr 10,000
14th To Ns Capital A/c 10,000 1
March (Being transfer of Nshare of general reserve
to his capital A/c)
Interest on Capital A/c Dr 700 1
To Ns Capital A/c 700
(Being Interest 5% pa credited to Ns Capital A/c
upto 14/3/2010)
Ms Capital A/c Dr 30,000
Os Capital A/c Dr 30,000
To Ns Capital A/c 60,000 1
(Being the share of Goodwill Adjusted)
Profit and Loss Suspense A/c Dr 12,000
To Ns Capital A/c 12,000 1
(Being the transfer of Ns Share of Profit to his
capital A/c upto the date of his death)
Ns Capital A/c Dr 1,52,700
To Ns Executor A/c 1,52,700 1
(Being the transfer of amount due to Ns = 15
executor a/c) marks
Ns Capital A/c
Particulars Rs. Particulars Rs.
To Ns Executor A/c 1,52,700 By Balance b/d 70,000 6=
By General Reserve A/c 10,000 3 marks
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By Interest on Capital A/c
(70,000 x 5 / 100 x 73 /365) 700 Total
By Ms Capital A/c 30,000 = 8
By Os Capital A/c 30,000 marks
By Profit & Loss Suspense
A/c (90000 x 2x73/365x1/3 ) 12,000
1,52,700 1,52,700
Working Note
Calculation of Goodwill = Average Profit x No. of year of Purchase = 9000 x 2 = Rs. 1,80,000
Average Profit = Total Profit / No. Of year = 2,70,000 / 3 = 90,000
Ns Share in Good Will = 1,80,000 x1/3 = 60 ,000.
OR
16. On 31.3.2010 . Balance sheet of new firm.
Ans. Revaluation A/c
Particulars Rs. Particulars Rs. 4=
To Provision for Bad Debts A/c 300 By Plant & Machinery A/c 5000 2 marks
To Stock A/c 5,000 By loss transferred to
Ws Capital A/c 180
Rs Capital A/c 120 300
5,300 5,300
Partners Capital A/c 13=3marks
Particulars W Rs. R Rs. B Rs. Particulars W Rs. R Rs. B Rs.
To Revaluation A/c 180 120 By Balance b/d 40,000 30,000
To Cash(Bal Figure) 5,920 7,280 By Profit & Loss A/c 9,000 6,000
To Balance c/d 49,500 33,000 30,000 By Cash A/c 30,000
By Premium for
goodwill A/c 6,600 4,400
55,600 40,400 30,000 55,600 40,400 30,000
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Balance Sheet of W, R & B as on 31st Mar 2010
Liabilities Rs, Assets Rs.
Creditors 20,000 Cash 32,800 6=
Capital Accounts Sundry Debtors 20,000 3 marks
W 49,500 Less Provision for Bad Debts 1,000 19,000 = 2+3+
R 33,000 Stock 20,000 3 = 8
B 30,000 1,12,500 Plant & Machinery 40,000 marks
Patents 20,700
132500 132500
Working Note:-
1. Average Profit = Total profit / No. of Years = Rs.66,000 / 4 = 16,500.
2. Calculation of Good Will = Average Profit x No. Of Year of Purchase =
16500 x 2 = Rs. 41,250.
3. Bs Share in Goodwill = 41250 x 4 /15 = Rs. 11,000
4. New Profit Share is calculated as under:-
Let Total Profit = 1
B share = 4 / 15th share
Remaining Profit = 1 4/15 = 11 / 15
Ws Share = 11 / 15 x 3 / 5 = 33 / 75
Rs Share = 11 / 15 x 2 / 5 = 22 / 75
New Ratio of W :R :B = 33/75 : 22/75 : 4/15 or 33:22:20
5. Adjustment of Capital
For 4 / 15 share, B Brought Capital = Rs. 30,000
Therefore Total Capital of the firm = Rs. 30,000 x 15 / 4 = 1,12,500
Ws Capital = 1,12,500 x 33 / 75 = Rs. 49,500
Rs Capital = 1,12,500 x 22 / 75 = Rs. 33,000
Bs Capital = 1,12,500 x 20 / 75 = Rs. 30,000
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PART B
(Financial Statement Analysis)
17. What is . Statement ?
Ans. Common size statements express all items of a financial statement as a percentageof some common base such as sales for profit & loss a/c and total assets & total
liabilities for balance sheet. 1 mark
18. Give meaning of Cash Flow.
Ans. Cash flow is inflow & outflow of cash & cash equivalents. 1 mark
19. State reason . no flow of cash
Ans. No flow because it simply represents the movement between items of cash or cash
equivalents. 1 mark
20. List the items. Act, 1956
Ans. The following items are included in under the heading current liabilities and provisions:-
Current Liabilities : (Any Three)
a) Acceptances x 3 =
b) Sundry Creditors. 1
c) Outstanding Expenses marks
Provision:- (Any Three)
For Taxation
For Dividends.
For Contingencies. x 3 =
For Provident Fund Scheme. 1
For Insurance marks
Pension & Other similar benefits
21. Prepare a comparative ....
information
Ans. Comparative Income Statement(as on 31st March 2009 & 2010)
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Particulars 2009 2010 Absolute % of
Rs. Rs. Change Rs. Increase
or Decrease
Sales 10,00,000 12,50,000 2,50,000 25 1 mark
Lass :Cost of Goods Sold 5,00,000 6,50,000 1,50,000 30
Gross Profit 5,00,000 6,00,000 1,00,000 20 1 mark
Less :Operating Expenses 50,000 60,000 10,000 20
Net Profit before tax 4,50,000 5,40,000 90,000 20 1 mark
Less: Income Tax 2,25,000 2,70,000 45,000 20 1 mark=
Net Profit Alter tax 2,25,000 2,70,000 45,000 20 4 marks
22. On the basis.... closing stock 1,00,000
Ans. i) Debt Equity ratio = Debt / Equity = 4,00,000 / 8,00,000 = 0.5 : 1
Debt = 6% Debentures + 9% Loan = Rs. 3,00,000 + Rs.1,00,000
=Rs. 4,00,000
Equity = Paid up Share Capital + Debenture Redemption Reserve
= Rs.6,00,000 +Rs. 2,00,000 = Rs.8,00,000
ii) Working Capital Turnover Ratio = Cost of goods sold / Working Capital
OR Net Sales / Working Capital
= 45,00,000 / 8,00,000 or 60,00,000 / 8,00,000
= 5.63 times or 7.5 times
Working capital = Other Current Assets + Closing Stock - Current Liabilities
= Rs. 11,00,000 + Rs.1,00,000 Rs.4,00,000
= Rs. 8,00,000
mark
formula
+
mark
compo
nents +
1 mark
computation of
ratio
= 2
mark
formula
+
mark
compo
nents +
1 mark
compu
tation of
ratio
= 2 = 4
marks
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23. From the following .. during the year
Ans. Cash Flow Statement (For the year ended 31st March 2010)
Particulars Rs. Rs.
(A) Cash Flow from Operating Activities :
Net Profit Before Tax 24,500 1
Adjustment: Add 1. Depreciation on Fixed Assets 14,700
2. written off Preliminary Expenses 500
Operating Profit Before Changes in Working Capital 39,700
Less : Increase in Current Assets
Stock (2,000)
Debtors (1,500)
Add: Increase in Current Liabilities
Trade Creditors 2,300
Cash Flow from Operating Activities : 38,500
(B). Cash Flow from Investing Activities:
Purchase of Fixed Assets (51000)
Net Cash Used in Investing Activities : (51,000)
(C). Cash Flow from Financing Activities:
Issue of Shares 20,000
Payment of Interim Dividend (7,000)
Cash Flow from Financing Activities: 13,000
Net Increase in Cash & Cash Equivalent 500
Add: Opening Balance of Cash & Cash Equivalent 2,000
Closing Balance of Cash & Cash Equivalent 2,500
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Working Note: Calculation of Net Profit Before Tax.
Net Profit as per Profit & Loss A/c (15,000- 10,000) 5,000
Add: Transfer to General Reserve 12,500
Interim Dividends paid during the year 7,000
Net Profit Before Tax 24,500
Fixed Assets Account
Particulars Rs. Particulars Rs.
To Balance b/d 46,700 By Depreciation A/c 14,700
By Balance c/d 83,000 = 6
To Bank A/c (Purchase) 51,000 marks
97,700 97,700
PART C
(Computerized Accounting)
17. What is codification of accounts? 1 mark
Ans. Classification & division of Accounting terms in the Hierarchy of Generally Accepted
Accounting Principles is called codification of accounts.
18. What are logical values? 1 mark
Ans. The values together when represents complete information of any entity are called
logical values.
19. What is query? 2 marks
Ans. A query is a computer database language, it consists a set of command to perform
basic data management functions like retrieval, addition & deletion of data.
20. What is a record in DBMS? 3 marks
Ans. Record is a named collection of data items which represents a complete unit of
information.
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21. Why in DBMS . Single table? 3
marks
Ans. Because of following advantages:-
1. Data Redundancy.
2. Easy Management.
3. Centralized Data.
4. Simultaneous Updation.
5. Rapid Access.
22. Briefly . Accounting Information System. 4 marks
Ans. Accounting Information Systems (AISs) combine the study and practice of accounting
with the design, implementation, and monitoring of information systems. Such systemsuse modern information technology resources together with traditional accounting
controls and methods to provide users the financial information necessary to manage
their organizations.
AIS Processing ( Input ? Process ? Output)
AISs cover all business functions from backbone accounting transaction processing
systems to sophisticated financial management planning and processing systems. Its
various functions are:-
Financial reporting, Cost accounting systems, Management accounting systems
DEVELOPMENT The development of AIS includes five basic phases: planning,
analysis, design, implementation, and support.
23. Calculate. Following 3x2=6 marks
Ans. Dearness allowance
=if((a2-15000*.30) =8001,6000,3000))
=if(c2
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QUESTION PAPER CODE 67/1
EXPECTED ANSWERS/VALUE POINTS
PART A
(Not for Profit organisations, Partnership firms and company Accounts) Marks Dist.
1. What is the Basis Account? 1 mark
Ans. Cash basis
2. Give the average.. each quarter. 1 mark
Ans. 7 months.
3. State the ratio. 1 mark
Ans. The ratio in which the partners may sacrifice their share of profit in favour of other
partner is called Sacrificing Ratio.
4. How Does of a firm? 1 mark
Ans. The firm that produces high value added products or has stable demand will
be able to earn more profit and more goodwill.
5. Give the .. security. 1 mark
Ans. When the Debentures are issued as secondary or additional security along with the
Principal security is called the issue of Debentures as a collateral security.
6. From the following . 2009- 2010.
Ans. Balance Sheet (As on 31st March 2009)
Liabilities Rs. Assets Rs.
Prize Fund 20,000
Balance Sheet (As on 31st March 2010)
Liabilities Rs. Assets Rs.
Prize Fund 20,000
Add: Donation for
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Match Fund 40,000 2
60,000
Less: Prize Awarded 69,000
Transfer to income & (9,000)expenditure A/c Nil
Income And Expenditure Account ( for the year ended 31st march,2010) +
Expenditure Rs. Income Rs. +2+
To Prize Awarded 9,000 = 3 marsk
Note :- If the examinee has shown a working note for calculating the excess
amount of prize expenses instead of balance sheet as on 31st Dec 2010 full
credit should be given.
7. Good Luck ... Good Luck Ltd.
Ans. Journal of Good Luck Ltd.
Date Particulars LF Dr (Rs.) Cr (Rs.)
Machinery A/c Dr 10,00,000
To Fairdeals Ltd. 10,00,000 1 mark
(Being Machinery purchased)
Fairdeals Ltd Dr 10,00,000
To Equity Share Capital A/c 8,00,000 2 mark
To Securities Premium A/c 2,00,000 =
(Being the issue of 80,000 fully paid Equity 3 mark
Shares of Rs. 10 each at a premium of 25%
per share)
Working note:- Number of Equity Shares to be issued = purchase price / issue price per
share = 1000000 / 12.5 = 80000 shares
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8. X Ltd. Redeemed .. books
of X Ltd.
Ans. Journal of X Ltd.
Date Particulars LF Dr (Rs.) Cr (Rs.)
6% Debenture A/c Dr 1,00,000
Premium on Redemption of Debenture A/c Dr 5,000
To Debentureholders A/c 1,05,000 1
(Being 1000 debenture due for redemption)
Debentureholders A/c Dr. 1,05,000
To Equity Share capital A/c 84,000
To Securities Premium A/c 21,000 1 =
(Being 1000 debentures were redeemed by 3 marks
converting them into 840 equity shares of
Rs 100 each issued at a premium of 25% )
Working note:- Number of Equity Shares to be issued
= Amount Payable / Issue Price per share = 1, 05,000 / 125 = 840 Equity Share.
9. A & B Entered .. Loan A/c of A.
Ans. Dr. Profit & Loss Appropriation A/c Cr.
Particulars Amount Rs. Particulars Amount Rs.
To As Capital A/c 2,12,500 By Net Profit ( 4,30,000
To Bs Capital A/c 2,12,500 4,25,000 After Interest on loan-5,000) 4,25,000
4,25,000 4,25,000
Partners Capital A/c
Dt. Particulars A Rs. B Rs. Dt. Particulars ARs. BRs.
1.4.09 By Bank 5,00,000 3,00,000
1.4.09 Balance c/d 7,12,500 5,12,500 By Profit & P.T.O.
1 markfor
journal
entry +
2 marks
for
capital
a/c + 1
mark for
loan a/c
= 4 marks
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Loss App-
ropriation
A/c 2,12,500 2,12,500
7,12,500 5,12,500 7,12,500 5,12,500
Journal Entry
Date Particulars LF Dr Rs. Cr Rs.
1.4.09 Profit & Loss Appropriation A/c Dr. 4,25,000
To As Capital A/c 2,12,500
To Bs Capital A/c 2,12,500
(Being Profit Distributed among thepartners)
Dr As Loan A/c Cr.
Date Particulars Amount Rs. Date Particulars Amount Rs.
2009 Oct 31st By Bank 2,00,000
2010 To Balance 2,05,000 31.3.2010 By Interest
Mar 31st c/d on Loan 5000
2,05,000 2,05,000
Note:- If the candidate has dabited interest on loan to profit & Loss A/c full credit to be given.
10. A Partnership . Method.
Ans. Capital Employed = Rs.4,00,000 Normal Rate of Return 15%
Normal Profit= 4,00,000 x 15/100 = 60,000
Add Salary 1,00,000
Rs.1,60,000
Average Profit = 1,90,000 + 2,20,000 + 2,50,000/ 3 = Rs.2,20,000
Super Profit = 2,20,000-1,60,000 = Rs.60,000
Goodwill = 60,000 x 2 = Rs.1,20,000
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II. Capitalisation Method:
Goodwill = Estimated Capital Actual Capital Employed
= 8,00,000 4,00,000 = Rs.4,00,000
Average Profit = 2,20,000 1,00,000 = Rs.1,20,000
Estimated Capital = Average Profit x 100 / Normal rate of return
= 1,20,000 x 100 / 15 = Rs.8,00,000
Goodwill = Rs.4,00,000 1 mark for each finding = 1 x 4 = 4 marks
11. Pass the necessary journal repayable at par.
Ans. Journal
Particulars LF Debit (Rs.) Credit (Rs.)
Bank A/c Dr 39,37,500
To 9% Debenture Application & Allotment A/c 39,37,500
(Being debenture application & allotment money recd)
9% Debenture Application & Allotment A/c Dr 39,37,500
Loss on issue of Debenture A/c Dr. 5,62,500
To 9% Debenture A/c 37,50,000
To Securities Premium A/c 1,87,500
To Premium on Redemption of Debenture A/c 5,62,500
(Being 9% debentures issued at premium)
9% Debenture A/c Dr. 37,50,000
Premium on Redemption of Debenture A/c Dr. 5,62,500
To 9% Debenture-holders A/c 43,12,500
(Being 9% Debentures due for redemption)
Debenture-holders A/c Dr. 43,12,500
To Bank A/c 43,12,500
(being amount paid to debenture holders)
mark
for
each
correct
entry
x 8 =
4 marks
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II)
Particulars LF Debit (Rs.) Credit (Rs.)
Bank A/c Dr 21,60,000
To 12% Debenture application & allotment A/c 21,60,000(being debenture app & allotment money recd)
12 % Debenture application & allotment a/c Dr 21,60,000
To 12% Debenture A/c 20,00,000
To Securities Premium A/c 1,60,000
(Being 12% Debentures issued at premium)
12% Debenture A/c Dr. 20,00,000
To Debenture holders A/c 20,00,000
(Being Debentures due for redemption at par)
Debenture holders A/c Dr. 20,00,000
To Bank A/c 20,00,000
(Being amount paid to debenture holders)
12. From the following items. outstanding.
Ans. Income and Expenditure Account
Dr. For the year ended 31.3.2010 Cr.
Expenditure Rs. Income Rs.
To salaries 55,000 By Subscription 44,000
To Lighting expenses 5,500 Less: Advance received 1,000
To Stationary 3,600 43,000
Less : Arrears
To miscellaneous Expenses 3,000 (Previous year) 750
To Interest on loan 1,200 42,250
Add Outstanding 3,600 4,800 Add: Arrear To Rent and Rates 4,500 (current year) 4,700 46,950
Less : prepaid Rent 500 4,000 By Net Proceeds of
To Surplus (Excess of Income Refreshment Room 30,000
over Expenditure) 5,950 By Lockers Rent Received 4900
81,850 81,850
1
marks
for
sub-
scription
amount
+
mark
foreach
correct
posting
= 6
marks
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13. Pass the necessary. loss of Realisation.
Ans. Journal
Date Particulars LF Dr (Rs.) Cr (Rs.)
i. Realisation A/c Dr 10,000
To James Capital A/c 10,000
(Being Brothers Loan taken over by James)
ii. Bank A/c Dr 12,000
To Realisation A/c 12,000
(Being Debtors Realized in cash)
iii. Haider's Capital A/c Dr 12,000
To Realisation A/C 12,000
(Being Investment taken over by Haider)
iv Realisation A/c Dr 19,000
To Bank A/c 19,000
(Being creditors settled)
v Realisation A/c Dr 2,000
To Bank / Cash A/c 2,000
(Being dissolution expenses paid )
vi James Capital A/c Dr 6800
Haider Capital A/c Dr 3400
To Realisation A/c 10,200
(Being loss on Realisation transferred to
partners capital A/cs)
1 mark
for each
correct
entry =
1 x 6 =
6 marks
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14. On 1 .1.2007 a public.. Companies Act.
Ans. Date Particulars LF Dr (Rs.) Cr (Rs.)
2011 Profit and loss Appropriation A/c Dr. 15,00, 000
31stdec. To Debenture redemption reserve A/c 15,00, 000
(Being sufficient reserve created out of profit)
2011 10% Debenture A/c Dr. 15,00, 000
dec.31st Premium on redemption of
Debenture A/c Dr. 2,25,000
To Debentures-holders A/c 17,25,000
(Being debentures due for redemptionat premium)
Debentureholders A/c Dr. 17,25,000
To Bank A/c 17,25,000
(Being 15,000 Debentures are redeemed
Debenture redemption reserve A/c Dr 15,00,000
To General reserve A/c 15,00,000
(Being Debenture Redemption Reserve A/c
closed)
15. Dinesh Ltd. Invited.Dinesh Ltd.
Ans. Date Particulars LF Dr (Rs.) Cr (Rs.)
Bank A/c Dr. 10,000
To Equity share application A/c 10,000
(Being application money recd)
Equity Share application A/c Dr. 10,000
To Equity Share Capital A/c 10,000
(Application money transferred to capital)
1 for
each
Entry
4 = 6
marks
1 mark
each for
First Call
Second
Call due
And
1 mark
for
Capital
reserve
Entry
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Share allotment A/c Dr. 20,000
To Share Capital A/c 20,000
(Being allotment due)
Bank A/c Dr. 19,800
Calls in Arrears A/c Dr. 200
To Share allotment A/c 20,000
(Allotment money received)
Share Capital A/c Dr. 300
To Share allotment A/c /Calls in Arrears A/c 200
To forfeited shares A/c 100
(forfeited 100 shares for non payment of
allotment money)
Share I call A/c Dr. 29,700
To Share Capital A/c 29,700
(Being I call due on 9900 shares)
Bank A/c Dr. 29,250
Calls in Arrears A/c Dr. 450
To Share I call A/c 29,700
(First call money recd, with the exception of 150
shares)
Equity Share Capital A/c Dr. 900
To Calls in arrear A/c 450
To Forfeited shares A/c 450
(Being 150 shares forfeited)
Equity Share II & Final Call A/c Dr 39,000
To Equity Share Capital A/c 39,000
(Being II & final call money due on 9750 shares)
For all
other
Entries
mark
each
1+1+1+
x 10
= 8
marks
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23 4
Bank A/c Dr. 38,800
Calls in arrears A/c Dr. 200
To Equity Share II Final Call A/c 39,000
(II call money recd with exception of 50 shares)
Share Capital A/c Dr 500
To calls in arrears A/c 200
To Forfeited shares A/c 300
(50 shares forfeited for non payment of final
call money)
Bank A/c Dr 2700
Forfeited Share A/c Dr. 300
To Equity Share Capital A/c 3000
(All 300 shares are reissued )
Forfeited Shares A/c Dr. 550
To Capital Reserve A/c 550
(being excess amount in for feited shares A/c after
adjustment, transferred to capital reserve A/c)
Note:- Even if Calls in arrears A/c is not opened full credit to be given.
OR
15 Applications for 15,00,000 shares .. Moti Ltd.
Ans. Journal Entries in Books of MotiLtd.
Particulars LF Dr (Rs.) Cr (Rs.)
Bank A/c Dr. 75,00,000
To Equity Share Application A/c 75,00,000
(being application money recd)
mark
for entry
3 & 5
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23 5
Equity Share Application A/c Dr 75,00,000
To Equity Share Capital A/c 30,00,000
To Securities Premium A/c 20,00,000
To Bank A/c 15,00,000
To Equity Share allotment A/c 10,00,000
(being application money adjusted)
Equity Share Allotment A/c Dr. 40,00,000
To Equity Share Capital A/c 40,00,000
(being allotment money due)
Bank A/c Dr. 29,40,000
Calls in arrears A/c Dr. 60,000
To Equity Share allotment A/c 30,00,000
(Being allotment money recd)
Equity Share I & Final call A/c Dr. 30,00,000
To Equity Share Capital A/c 30,00,000
(Being I & final call due)
Bank A/c Dr. 29,40,000
Calls in arrears A/c Dr 60,000
To Equity Share First & Final call A/c 30,00,000
(being I & final call recd)
Equity Share Capital A/c Dr. 2,00,000
To calls in arrears A/c 1,20,000
To forfeited shares A/c 80,000
(being 20,000 Equity shares forfeited)
Bank A/c Dr. 80,000
Forfeited Share A/c Dr. 20,000
To Equity Share Capital A/c 1,00,000
(being 10,000 forfeited shares reissued)
Other
entries
1 mark
each
= 1+7 =
8 marks
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23 6
Forfeited Share A/c Dr. 20,000
To Capital Reserve A/c 20,000
(being amount transferred to capital reserve)
W.N : 20000 x 4 = 80000
Less: 4000 x 5 = 20000 = 60000
16. X, Y & Z ...... due on 31.1.2011.
Ans. Date Particulars LF Debit (Rs.) Credit (Rs.)
2010 Xs capital Account Dr. 10938
July31st Ys capital Account Dr. 6562
To Zs capital Account 17500
(being Zs share of goodwill comp-
ensated by the existing partner)
Profit and loss suspense A/c Dr. 2500
Zs capital A/c 2500
(being Zs share profit till the date of
death credited to his capital A/c)
Revaluation A/c Dr. 5,000
To Machinery A/c 5,000
(being decrease in the value machinery recorded)
Patents A/c Dr. 5,000
Building A/c Dr. 12,500
To Revaluation A/c 17500
(Being assets revalued)
Revaluation A/c Dr 12,500
To Xs Capital A/c 6,250
To Ys Capital A/c 3,750
To Zs Capital A/c 2,500
(Being Profit on Revaluation transferred to
Partners Capital A/c)
1 mark
for
each
correct
entry =
1x7=7
marks
1 mark
forexecu-
tors A/c
= 8
marks
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23 7
Z capital Account Dr. 60,000
To Zs Executors A/c 60,000
(being net amount due to Z transferred to
his executors a/c)
Zs Executor's Account Dr. 17,500
To Bank A/c 17,500
(being executors are paid cash partly)
Dr. Zs Executors Account Cr.
Date Particulars Amount Rs. date Particulars Amount Rs.
31stJuly To bank 17,500 2010 By Zs Capital A/c 60,000
July31st
2011 To bank 13,175 2011
Jan 31st (10625+2550) Jan31st By interest on loan 2,550
To balance c/d 31,875
62,550 62550
Working Notes:-
Dr. Z Capital Account Cr.
To Zs Executors A/c 60,000 By balance b/d 37,500
By profit and loss suspense A/c 2,500
Revaluation A/c 2,500
By X, capital A/c 10938
By Ys capital Account 6562
60,000 60,000
OR
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23 8
16. Murari and Vohra were partners .. of the
new firm.
Ans. Revaluation A/c
Dr CrParticulars Amount Rs. Particulars Amount Rs.
To Stock A/c 2,000 By Land 50,000
To P & M A/c 16,000
To Bad Debts Written off A/c 5,000
To Muraris cap. A/c 13,500
Vohra's cap. A/c 13,500 27,000
50,000 50,000
Dr Capital A/cs of Murari vohra & Yadav Cr.
Particulars Murari Rs. Vohra Rs. Yadav Rs. Particulars Murari Rs. Vohra Rs. Yadav Rs.
To Balance 1,78,500 2,18,500 2,00,000 By
C/d Balance
b/d 1,20,000 1,60,000
By Cash 2,00,000
By Pre.for 45,000 45,000
G.W.
By Rev. 13,500 13,500
1,78,500 2,18,500 2,00,000 1,78,500 2,18,500 2,00,000
Balance Sheet of Murari Vohra & Yadav as on 1st Apr 2010
Liabilities Amount Rs. Assets AmountRs.
Capital A/cs Cash in hand 3,15,000
Murari 1,78,500 Plant & Machinery 64,000
Vohra 2,18,500 Land & Building 2,50,000
Rev.
A/c 2
+
Cap. A/cs
3 marks
+
Final
Balance
sheet 3
marks
= 8marks
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23 9
Yadav 2,00,000 5,97,000 Stock 8,000
Bank O/D 15,000 Debtors 35,000
Creditors 60,000
6,72,000 6,72,000
Working Notes
Memorandum Balance Sheet
Liabilities Amount Rs. Assets AmountRs.
Creditors 60,000 L & B 2,00,000
Bank O/D 15,000 Stock 10,000
Murari s Capital 1,20,000 Debtors 40,000
Vohras Capital 1,60,000 P & M 80,000
Cash 25,000
(balansing
figure)
3,55,000 3,55,000
Part B
(Financial Statements Analysis)
17. State the interest . financial
statements. 1 mark
Ans. Tax Authorities are interested to analyse the financial statements to know about the
performance of the company & to collect various types of taxes.
18. List any two investing out of cash. x2=1mark
Ans. Outflow of cash i) purchase of fixed assets ii) purchase of investments.
Or any other two correct activities mark each
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24 0
19. Payment of dividend .............. Cash Flow
Statement. 1 Mark
Ans. Payment of dividend classified under financing activity.
20 Give the major. Goodwill.
Ans. Liabilities Assets
Share capital Fixed Assets
Reserves surplus Goodwill
Secured loan Investment
Unsecured loan
Current liabilities and Current assets loans and
provisions advances
Sundry creditors Current assets
Provision for tax Interest accrued on
investments
Loose tools
Miscellaneous
Expenditure A/c
Preliminary expenses
If candidate has presented the items in a statement form also full credit to be given
21. Calculate Current Ratio .. Quick Ratio 0.75 : 1.
Ans. Stock turnover ratio = 4times = cost of goods sold / average stock
Cost of goods sold=Sales-Gross profit =3,00,000-75,000=2,25,000
Ave. stock =op. stock + closing stock /2 =X+X+{20,000)/2 = 2,25,000/4 =56,250
let the opening stock be X 2x+20,000/2 =56250, 2x=56250-20,000x2
x=92500/2=46250 op. stock =46250 cl. stock =46250+20,000=66250
current liabilities = 40,000 Quick assets 0.75:1 = 40,000 /0.75 =30,000
current assets = quick assets + stock =30,000+66250 =96250
current ratio = current assets/current liabilities =96250/40,000 =2.41 : 1
Mark
for each
correctItem
x 6 =
3 marks
Calculation
of closing
stock 1
mark +
quick
assets 1mark +
current
ratio 2
marks
= 4 marks
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24 1
22. Prepare the Comparative .. information
Ans. Comparative income statement
Particulars 31.3.2009 31.3.2010 Absolute % of
Rs. Rs. changeIncrease
Rs. or
Decrease
Sales 40,000 50,000 10,000 25
COST OF GOODS SOLD 30,000 35,000 5,000 16.67
GROSSPROFIT 10,000 15,000 5,000 50
LESS operating expenses 2,500 3,000 500 20
Operating profit 7,500 12,000 4,500 60
Add income 2,000 3,000 1,000 50
NET PROFIT BEFORE TAX 9,500 15,000 5,500 57.89
LESSTAX 4,750 7,500 2,750 57.89
PROFIT AFTER TAX 4,750 7,500 2,750 57.89
23. From the following Balance during the year.
Ans. CALCULATION OF NBIT
PROFIT = 10,000
ADD RESERVE 25,000 Add Advance Tax 5,000 NBIT = 40,000
FIXED ASSETS ACCOUNT
Dr. Cr
TO BALANCE B/d 93400 By depreciation 20,000
To bank (PURCHASES) 92600 By balance c/d 1,66,000
1,86,000 1,86,000
1 markfor Gross
Profit
comparision
+ I mark
for
operating
profit
+ 1 mark
for net
profit
before tax.+ 1 mark
for net
profit after
tax
=
4 marks
NBIT for1 mark
+ FA A/c
mark
+ Op. A .
2 marks
+ .I.A.
mark
+ F A1 mark
+
net C.F.
1 mark
= 6 marks
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24 2
Cash flow statement of Vikas ltd for the year ending 31stmarch 2010 asper
AS3revised
Particulars Amount Rs. Amount Rs.
Net profit before interest and tax 40,000 40,000A cash flow from operating activities
Non cash items
Add Depreciation 20,000
Preliminary expenses written off 1,000 21,000
Cash flow from operating activities before working capital 61,000
changes
Less in crease in stock (4000)
LESS Increase in Debtors (3,000)
ADD increase in creditors 4,600
Net cash flow from operating activities before tax 58,600
Less Advance Tax (5000)
Cash Flow from operating activities after tax 53600
B. Cash flow from investing activities
Purchase of fixed assets (92,600)
Net cash used in investing activities (92600)
C. Cash flow from financing activities
Issue of shares 40,000
Net cash flow from financing activities 40,000
Net cash flow from A+B+C 1,000
Cash and cash equivalent in the beginning 4,000
Cash and cash equivalent at the end 5,000
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24 3
PART C (Computerized Accounting)
17. What are Sequential codes? 1 mark
Ans. The data storage format or transmission where the resolution is constant and later
data adds only.
18. What is Normalization? 1 mark
Ans. It is a process of refining a database design in order to reduce or eliminate the
possibility of duplicate or redundant data items.
19. What is the function of Table in DBMS? 2 marks
Ans. Table is a collection of related information represented in form of rows and columns..
It is the only factor which can establish the associations among the attributes of an
entity as well as the relationship between various entities.
20. What is a join line in DBMS? 3 marks
Ans. In Join Line related tables are joined using an inner join that creates a result set
based on rows containing matching information in the join columns.
21. Why in DBMS . Single table? 3 marks
Ans. Because of following advantages:-
1. Data Redundancy.
2. Easy Management.
3. Centralized Data.
4. Simultaneous Updation.
5. Rapid Access.
22. Briefly . Computerized Accounting System. 4 marks
Ans. 1) SECRECY OF DATAS:-User rights are restricted to a vast extent so that datamanipulation, control is effective. 2) FLEXIBILTY: It is easy to enter data, retrieval
of data, and generation of reports at any time.
23. Calculate. Following 3x2 = 6 marks
Ans. Dearness allowance
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= if((a2-15000*.45) =10001,8000,4000)) or= if(c2